JULY 2005
estimate will be certified as reasonable by a
representative of VA Engineering Service, or
comparable service, or by a qualified consultant
During lease negotiations, VA' preferred
s
acting on VA' behalf. The ACO approves the
s
strategy is to eliminate any liquidated damages
certified amount and then makes a payment to
clause from the lease relative to the condition of
the landlord after vacating the premises. The
the premises upon move-out. For a sufficiently
ACO requires a letter accepting the return of the
long lease term, the alterations installed by the
premises "as is," plus the negotiated payment
Lessor on behalf of VA will have no
and stating that VA is not subject to any
determinable economic value and will, in all
additional obligations to restore or repair the
probability, require demolition or removal by the
premises. The ACO is obligated to verify that all
subsequent tenant.
payments due the Lessor for any reason are
paid in a timely fashion.
For leases with a liquidated damages clause
relative to the condition of the premises upon
surrender, the ACO may either negotiate a
Surrender of Premises
damages amount based upon the cost to restore
Move-out. The ACO should ensure that all of
the premises or order an appraisal, which will
VA' personal property and fixtures are removed
s
determine the magnitude of the loss. Upon
completely from the premises prior to requesting
payment to the Lessor and the Lessor'
s
that the Lessor execute an acceptance letter for
executing an acceptance of space, VA has no
return of premises. Further, VA should remove
further obligation to the Lessor.
all bulk trash from the premises, adjacent
hallways, and storage facilities. Finally, the VA
The ACO should seek the advice of Regional
should arrange for the leased premises to be
Counsel or General Counsel (025) when a
broom swept immediately prior to surrender to
determination has been made to vacate and
the Lessor.
liquidated damages are involved.
Final Inspection. The ACO should make an
Restoration of Premises
appointment for the Lessor to inspect the
If the lease requires restoration of the leased
premises after VA has completed all repairs and
premises for damages beyond normal wear and
completely vacated and cleaned the premises.
tear and such damage is identified during the
The purpose of the inspection is to ensure that
preliminary inspection, then a list of items to be
all repairs have been made, that no new repairs
repaired or replaced is prepared. The preferred
are needed, and that the premises are clean.
strategy is to avoid restoring the premises by
agreeing to a lump sum payment, which the
Acceptance for Return of Premises. After the
Lessor will accept in lieu of VA' restoring the
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final inspection and payment of all moneys owed
premises.
the Lessor or the VA, the Lessor executes a
release letter prepared by VA which certifies that
The Lessor and VA will negotiate a payment that
the Lessor has accepted the return of the
will represent the difference in the economic
premises and that no remaining obligations or
value of the premises given the then existing
claims exist relative to the lease.
condition versus the condition of the premises if
subject only to ordinary wear and tear. This
VA DESIGN GUIDE
LEASE BASED OUTPATIENT CLINICS
SECTION 9-13
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